Cullen/Frost Bankers (NYSE:CFR – Get Free Report) and BANCORP 34 (OTCMKTS:BCTF – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.
Profitability
This table compares Cullen/Frost Bankers and BANCORP 34’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cullen/Frost Bankers | 22.86% | 15.58% | 1.28% |
| BANCORP 34 | 13.45% | 4.02% | 0.38% |
Earnings & Valuation
This table compares Cullen/Frost Bankers and BANCORP 34″s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cullen/Frost Bankers | $2.27 billion | 4.13 | $648.56 million | $10.27 | 14.54 |
| BANCORP 34 | $54.19 million | 1.88 | $7.86 million | $0.96 | 15.58 |
Cullen/Frost Bankers has higher revenue and earnings than BANCORP 34. Cullen/Frost Bankers is trading at a lower price-to-earnings ratio than BANCORP 34, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Cullen/Frost Bankers has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, BANCORP 34 has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.
Institutional and Insider Ownership
86.9% of Cullen/Frost Bankers shares are held by institutional investors. Comparatively, 6.5% of BANCORP 34 shares are held by institutional investors. 1.1% of Cullen/Frost Bankers shares are held by company insiders. Comparatively, 7.4% of BANCORP 34 shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Cullen/Frost Bankers and BANCORP 34, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cullen/Frost Bankers | 2 | 5 | 4 | 1 | 2.33 |
| BANCORP 34 | 0 | 0 | 0 | 0 | 0.00 |
Cullen/Frost Bankers presently has a consensus price target of $148.73, indicating a potential downside of 0.41%. Given Cullen/Frost Bankers’ stronger consensus rating and higher possible upside, research analysts clearly believe Cullen/Frost Bankers is more favorable than BANCORP 34.
Summary
Cullen/Frost Bankers beats BANCORP 34 on 13 of the 15 factors compared between the two stocks.
About Cullen/Frost Bankers
Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services, as well as originates commercial leasing services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. The company was founded in 1868 and is headquartered in San Antonio, Texas.
About BANCORP 34
Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking products and services to individuals and businesses in the United States. It accepts various deposit products, such as savings accounts, checking accounts, money market accounts, demand and time deposits, NOW accounts, and individual retirement accounts, as well as certificates of deposit. The company also provides term, working capital, construction, USDA, small business administration, equipment, assisted living and skilled nursing, renewable energy and solar equipment, and commercial real estate loans; and small to medium size business and business acquisitions financing; lines of credit; multi-family finance; and employee stock ownership plans, HOA lending, and investor pools of single family rentals. In addition, it offers credit and debit cards; safe deposit boxes; treasury management products; and merchant card processing, cash management, e-banking, mobile and online banking, bill payment, and merchant capture services. The company operates through its network of full-service branches in Scottsdale and Arizona, as well as Alamogordo and Las Cruces, New Mexico. Bancorp 34, Inc. was founded in 1934 and is headquartered in Scottsdale, Arizona.
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